Don’t Get Duped by a Rent-a-Bank
In these trying times, businesses and individuals alike are striving to make sure their basic needs are covered. Unfortunately, unscrupulous “rent-a-banks” have been popping up around the country and taking advantage of desperate consumers. These bad actors are attempting to find a way around state laws that prohibit usurious interest rates – rates that exceed a state’s legal limit. In Georgia, that percentage is 60% per year.
Hurt Stolz, PC recently filed a lawsuit against one such “rent-a-bank” for charging an outrageous 88% interest rate on a $50,000 business loan. The worst part is that this unsuspecting consumer was tricked because the rate in the contract was shown to be a very small percentage per day – .281369863014 (which is ridiculous in and of itself). Fast forward a little over a year and the person now owes over $133,000 in principal and interest! A word of caution for anyone looking to secure a loan in the future, make sure you do business with a bank you trust – and in my opinion, state-chartered banks are the best!
Click here to read the full complaint filed by Hurt Stolz, PC on June 2, 2020.